BSBFIA303

BSBFIA303
Process accounts payable and receivable

Activity 1.

1. Yes

2. Tax invoices are similar to invoices except they include the suppliers
Australian business number (ABN) and GST amounts. A tax invoice should
clearly state it is a tax invoice.

3. 0.32

4. Yes all items were taxed

5. If discrepancies or errors are noted, the supplier should be contacted to
verify the document. Where errors have occurred the supplier should
generate a new and accurate invoice. The invoice can then be processed
and payment either authorised or made.

Activity 2.

1.
On some occasions there will be nothing on the face of a source document
which indicates that there is an error or discrepancy. Nevertheless, after
further investigation, it could be determined that one document is
inconsistent with another, and therefore one contains an error.

2. Upon checking, you might identify that a duplicate invoice has been
sent to the organisation and has been inadvertently paid twice. An invoice
might have been sent to a customer twice.

3. Report your concerns to the appropriate person or, if relevant,
organisation. Your supervisor or manager should know about any issues of
concern. Serious problems and concerns about fraud or other unlawful
behaviour might need to be reported to other authorities such as the
Australian securities and investments commission or police.

Activity 3.

1.
a) Cash transactions
b) Cash receipts journal
c) Cash receipts journal
d) Sales return journal
e) Cash payments journal

2.
When entering transactions into cash and credit journal systems each
transaction will effect two accounts. For example, if an organisation buys
stock on credit, its stock on hand account (an assets account) and
accounts payable account (a liability account) will increase. If its pays for
a binder, its cash account (an asset account) will decrease, and its fixed
asset account (also an asset account) will increase.

3.
(TABLE COMPLETED BOOK)

Activity 4.
(Completed in table)

Activity 5.
1. The transactions on the bank statement are in a different order than in
the journal. The bank statement lists the transactions as they occur at the
bank.

2. Sometimes cheques you receive may be dishonoured (bounced
cheques) or returned for a variety of reasons. Accordingly there are
different ways to capture this type of transaction. Cheques usually
dishonour, bounce or get returned because of post-dating, lack of
funds in the drawings account, stop cheque requests or insuffi cient
or incorrect signatories.

Activity 6.
1. (SCANNED TABLE)
2.
Expenses and income that might need to be updated will include:

 Interest
 Various bank charges
 Government duties
 Charges for a new cheque book
 Direct deposits

Regular checking of the balance of a bank account in the ledger with
the balance shown on the bank statement for the same period is
required. This will help identify any discrepancies

Activity 7.
1.

 Sales invoices underpaid or overpaid
 Supply invoices underpaid or overpaid
 Invoices paid twice
 Incorrect bank charges
 Incorrect direct payments or deposits

2.

When paying an invoice, sometimes your customers may
accidentally overpay or record the payment twice. Mistakes can happen,
but there are a number of ways you can easily handle the overpaid
amount:

- apply it to another unpaid invoice

- create a credit and refund the amount

- create a credit and apply it to a future invoice

- Or write it off.

Activity 8
(SCANNED TABLE

Activity 9
1.

- Some organisations might require, with regard to their working bank
accounts, weekly bank statements – in particular if their turnover is
high and rapid. Statement frequency is linked to the number of
transactions an account can be expected to generate. The more
transactions in the account, the more frequently a statement is
expected. Statements will be required by the organisation so that
internal reporting and reconciliation procedures can be accurately
completed.

Activity 10
1. Accounts Payable – Are the amounts owed to other parties – accounts
payable usually refers to the amounts owed for goods or services received
from a supplier. Suppliers are creditors of the organisation.
2. Accounts Receivable – Are the amounts owed to the organisation by
other parties – accounts receivable usually refers to amounts which are
owed by customers to pay for goods which have been purchased. These
parties are known as debtors.
3.
(SCANNED TABLE)

Activity 11
(SCANNED TABLE)

Activity 12
(SCANNED TABLE)

Activity 13
1. (In Table)
2. A bank reconciliation statement shows the differences between the
ledger balance for cash and the balance in the banks records. There will
also be figures on the bank statement not necessarily taken into account
in the business journals. This information should be updated before
attempting a balance.
3.
They don’t have the same balance where on your journal you may have
purchased something else.

Activity 14
1.
1. Financial Statements
o Profit & Loss accounts
o Balance Sheets
o Depreciation Schedules
o Taxation Returns eg. income tax, group tax, superannuation,
fringe benefits tax, business activity statements and all supporting
documents.

2. General Ledger

3. Cash Records
o Cash Receipts Journal
o Bank Deposit Books
o Cash Payments Journal

o Cheque Butts
o Petty Cash Books

4. Bank Account Statements, Bank Reconciliations and Bank
Loan Documents

5. Sales/Debtor Records
o Sales Journal
o Debtors Ledger
o List of Debtors
o Invoices & Statements issued
o Delivery Dockets

Activity 15
(SCANNED TABLE)

Activity 16
1.

- If the discrepancy relates to a payment received during the
statement creation process, the organisation could use a since paid
section on their statement. This is a section in which recent
payments can be recorded without requiring the same level of
information shown for other transactions. The since paid details
might be handwritten, since details were only discovered after the
statement was printed.

2.

- Make sure that statements can be dispatched within the required
time frame. Many organisations try to send out statements before
the end of the month. This is because debtors often pay amounts
outstanding in accordance with the month in which the statement
was received. January statements are paid before February
statements, which are paid before May statements etc.

Activity 17
(SCANNED TABLE)

Activity 18
(SCANNED QUESTIONS & TABLE)

Activity 19
1.
You will need to follow your organisations credit policies and procedures
when monitoring and reviewing the terms upon which credit will be
provided to customers. Whilst you might be responsible for considering
general credit terms, it is more likely that you will be required to monitor
and review the credit terms provided to individual customers.

2. It is important for management to receive regular reports on accounts
receivable because of the significance of these accounts. Problems of bad
or doubtful debts should be highlighted and the success of collection
efforts should be part of the reporting cycle. Debtor’s accounts need to be
regularly monitored and reviewed to determine the impact (if any) on the
credit extended to them in the future.

Q.1
Accounts payable are the amounts owed to other parties – accounts
payable usually refers to the amounts owed for goods or services received
from a supplier. Suppliers are creditors of the organisation. Accounts
Receivable are the amounts owed to the organisation by other parties –
accounts receivable usually refers to amounts which are owed by

customers to pay for goods which have been purchased. These parties are
known as debtors. (Answered in activity 10)

Q.2
- If it has not yet cleared the bank by the end of the month, it does
not appear on the month-end bank statement, and so is a
reconciling item in the month-end bank reconciliation

Q.3
- When you've identified all the errors, make the adjusting entries
needed for the accounts to reconcile with the correct balances.
Include a clear description of the reason for each transaction for
auditing purposes. Where possible, reverse the incorrect entry and
repost it correctly, rather than posting the difference only, to make
the transaction easier to follow. When all entries have been made,
reconcile the balances again as a final check.

Q.4
- . It serves to help our customers reconcile individual months
outstanding and also helps in getting payments from them as they
are looking at smaller figures rather than one lump sum.

Q.5
- You will need to follow your organisations credit policies and
procedures when monitoring and reviewing the terms upon which
credit will be provided to customers. Whilst you might be
responsible for considering general credit terms, it is more likely
that you will be required to monitor and review the credit terms
provided to individual customers. Before you make a decision about
the terms to be provided, you will need to obtain an overview of the
relevant account.

Q.6

- Make sure the balances on your journals and journal entries are accurate.
You could run a calculator tape, and attach it to each page of the journals
and general ledger, making sure totals are correct. You should also review

the trial balance for reasonableness, and compare the numbers with your
last trial balance, looking for differences that may be mistakes.

Q.7

- Bank statements can be, as already seen, issued at times required
by the organisation. Investment type accounts, for instance, will
only have six monthly statements issued, because an investment
account is intended to accrue interest over a longer period of time
and does not involve large transaction numbers.
Some organisations might require, with regard to their turnover is
high and rapid. Statement frequency is linked to the number of
transactions an account can be expected to generate. The more
transactions in the account, the more frequently a statement is
expected.

Q.8

Q.9

- You will need to have a good working knowledge of the legislation
involved with your business. This is important because it will ensure
that you are abiding and complying with the law rather than
breaking it and facing possibly harsh consequences.

Laws are put into place to protect everyone - the customer,
the employee and the company. You are not expected to be a
lawyer, but being aware of the relevant legislations will help your
organisation run more smoothly and avoid complications in the
future, such as getting tied up in lengthy legal battles for unfair staff
dismissal etc.

Q.10

- Errors and discrepancies usually refer to situations where the source
document does not properly reflect the transaction which occurred.
They might relate to inconsistencies between one source document
and another or between what is stated and what occurred. You will
need to determine the extent of any mistakes or inaccuracies and
take steps to address them appropriately.

Q.11

- The employee accountability definition is the responsibility of
employees to complete the tasks they are assigned, to perform the
duties required by their job, and to be present for their proper shifts
in order to fulfill or further the goals of the organization. If tasks are
not completed and functions of the job are not performed properly,
then that employee will also be responsible for dealing with the
repercussions.